Research On The Legal Nature Of Valuation Adjustment Mechanism In Private Equity Investment In China

With the continuous development of China’s financial markets,private equity are booming,bet agreement as a private equity investment is an important part of the framework,the value assessment of target company have the effect of the two-way adjustment,investment and financing is widely used in recent years and cause a series of disputes,caused wide attention of law practice and academia.This paper studies the problems related to the legal nature of the counterbet agreement by means of data statistics,case and theoretical analysis,aiming at solving the legal application of the counterbet agreement in judicial practice and the related system construction problems.Current related academic research about whether bet agreement constitutes a conditional contract,luckily,the guaranty contract and an option contract that divided four issues,the indistinct definition in theory directly lead to the confusion in judicial practice,this shows that the accurate definition of private equity investment bet agreement in legal nature is necessary.This paper analyzes the necessity of defining the legal nature of the contraband agreement from such aspects as the influence of the legal nature of the contraband agreement on the application of law,the negative effect of the confusion on the practice,and the positive effect on the society.From the theoretical analysis of the four different theories and the relationship between the agreement and the difference,as well as the combination of practical cases that only according to the theory of the above several theories to study the legal nature of the agreement is inadequate.Bet on complex and diverse function in the form of the agreement of the biphasic and versatility,the author respectively from bet against the agreement of both rights and contractual attribute to analyze its legal nature,first bet agreement as part of the investment and financing agreement,the equity nature of the investment and financing agreement,in terms of preferred stock or convertible bonds investment trading as a means of investment behavior of the bet agreement shows a mezzanine properties;Secondly,by analyzing the independence,the subject matter and the effectiveness of the contract,it is demonstrated that the vam is an unknown contract with conditions that is relatively independent from the investment and financing agreement.Finally,it is concluded that the bet agreement is a nameless contract which is relatively independent from the investment and financing agreement and different from the contingent contract,guarantee contract and option contract.Finally,in view of the lack of relevant legislation and supervision on the counter-gambling agreement in China,it is suggested to construct the counter-gambling agreement from legislation,judicial concept and supervision,in order to give full play to the positive effect of counter-gambling agreement to serve the socialist economic construction.